Under Civil Code section 1354, the fee-shifting provisions relating to CC&R disputes between homeowners and HOAs, the prevailing party is determined based on who practically won–identical to the standard under Civil Code section 1717.
In Pope v. Oaks of Calabasas HOA, Case No. B237442 (2d Dist., Div. 5 Feb. 13, 2013) (unpublished), an HOA voluntarily reduced a monthly assessment by a small amount but defeated homeowner’s primary objection to an $11 monthly assessment. The trial court found HOA prevailed, awarding it $137,000 in fees and $15,244.19 in costs. (Ouch — all over an $11 assessment!)
Fee/costs awards affirmed on appeal. Although homeowner did get a $2,027.76 refund due to HOA’s voluntary reduction of another component of assessments, the HOA was the practical winner on the $11 monthly assessment battle which was the key donnybrook. The trial court actually ruled that even more costs were recoverable on the monthly assessment component than just the $11, so it definitely prevailed.